Summary:

 Senate Bill 109 (SB 109):  This act clarifies distinctions between the Public Regulation Commission (PRC) and the agency that supports it, outlines the agency's duties, and makes updates to rules, procedures, and ethical standards.  

Legislation Overview:

 Senate Bill 109 (SB 109):   
1. Definitions and Structural Changes
•	"Agency" refers to the institution and staff supporting the commission, including all employees.
•	"Commission" remains the three-member regulatory and adjudicatory body.
2. Public Regulation Commission Nominating Committee
•	Membership: Seven members, appointed based on qualifications in public utility regulation, ensuring political and geographical diversity.
•	Duties: Evaluate applicants and submit a list of qualified nominees to the governor for commission appointments.
3. Continuing Education for Commissioners
•	Commissioners must complete ethics training and 32 hours of relevant continuing education annually.
•	Compensation is withheld until education requirements are fulfilled.
4. Prohibited and Permitted Communications
•	Prohibited Communications: Commissioners and hearing examiners must avoid ex parte communications regarding pending cases.
•	Permitted Communications:
o	Procedural or emergency discussions with safeguards.
o	Consultation with advisory staff or non-party experts with appropriate disclosure.
5. Ethical Standards
•	Commissioners and employees must avoid pecuniary interests or improper relationships with regulated entities.
•	Post-employment restrictions prevent former commissioners and employees from representing parties before the PRC for specified periods.
6. Duties of the PRC and Agency
•	The commission focuses on regulatory and adjudicatory responsibilities.
•	The agency handles administrative, operational, and support functions under the chief of staff's direction.
7. Agency Organizational Units
•	Key divisions include Administrative Services, Consumer Relations, Legal, Utility, and the Pipeline Safety Bureau.
8. Legal Division and Utility Division
•	The Legal Division provides counsel and supports public interest representation in commission matters.
•	The Utility Division ensures balanced representation of public, consumer, and investor interests.
9. Hearing Procedures and Transparency
•	Hearing examiners may preside over cases and provide recommendations to the commission.
•	Rules are subject to public notice and comment unless an emergency justifies expedited procedures.
10. Consumer Relations Division
•	Investigates complaints and advises the commission on maximizing public input and resolving consumer issues.
11. Enforcement and Penalties
•	Violations of ethical or procedural standards may result in civil penalties, with enforcement by the attorney general or district attorney.
 

Amendments:

 Amended February 18, 2025 in SRC

SRCa/SB 109:  The following shows the highlights and key distinctions and clarifications made in the bill regarding New Mexico’s Public Regulation Commission (PRC) framework:

1. Commission vs. Agency -
a)	The Commission: A distinct three-member body with the ultimate authority to make regulatory and adjudicatory decisions.
Responsible for final rulings, budgeting, and adopting procedural rules.
b)	The Agency: Consists of the support staff and institutional structure that carries out the Commission’s day-to-day operations (such as docketing, research, investigations, hiring, and contracting).
Operates under the oversight of the Commission, with the Chief of Staff managing its daily functions.

Key Change:
Previously, “commission” was used to refer both to the governing body and its staff. The bill now clearly separates the two, assigning distinct roles and responsibilities to each.
2. Public Regulation Commission Nominating Committee
Structure & Membership: Remains a seven-member body.
Members must be New Mexico residents.  Serve four-year terms.
c)	Conflict-of-Interest Rules:
Committee members are barred from being employed by, contracted with, or holding any financial interest in any public utility regulated by the Commission.
These rules ensure that the selection of nominees for the Commission is conducted with strict impartiality.
3. Continuing Education for Commissioners
d)	Ethics Training:  New commissioners must complete an initial ethics certificate course (in-person or online) within the first 12 months of taking office.  They are required to take additional, shorter ethics refresher courses in subsequent years.
e)	Ongoing Professional Education:  Commissioners must complete 32 hours of continuing education annually, covering topics relevant to the Commission’s work.
Enforcement:
f)	Failure to comply with these requirements may result in referral to the Ethics Commission for sanctions.
Goal:
g)	To ensure high professional standards and reinforce ethical behavior and accountability among commissioners.
4. Prohibited Acts and Conflict-of-Interest Protections
Gifts and Value Restrictions:  Strict limits on accepting anything of value from regulated entities or intervenors.  Only minor items (e.g., inexpensive refreshments or standard promotional items) are allowed.
Financial Interests:
h)	Commissioners and agency staff cannot hold financial or controlling interests in any business regulated by the Commission.
Post-Employment “Cooling-Off” Periods:
i)	Former Commissioners: Cannot appear before the Commission on behalf of a regulated entity for two years.
Former Agency Employees: Cannot represent a party in an adjudication for one year.
j)	Neither group may participate in matters they were involved with while in office.
These measures are designed to prevent conflicts of interest, minimize undue influence, and protect the integrity of the Commission’s decision-making process.
5. Powers and Duties: Commission vs. Agency
Commission Duties:  Enforce and administer laws related to public regulation.
Prepare the annual budget.  Adopt procedural rules for hearings, alternative dispute resolution, and final adjudications.
Agency Duties:
k)	Managed by the Chief of Staff.  Responsible for everyday administrative operations (e.g., case management, research, investigations, hiring, and contracting).  Staff divisions support the Commission’s broader regulatory work.
Clarification:
l)	This separation ensures that high-level decision-making remains distinct from operational support.
6. Organizational Structure
m)	Realigned Divisions Under the Agency:  Administrative Services Division: Handles case docketing, budgeting, personnel, and procurement.
n)	Consumer Relations Division: Manages non-docketed consumer complaints and public outreach.
o)	Legal Division: Provides legal advice to the Agency and, when appropriate, to the Commission.
p)	Utility Division: Focuses on public interest issues in sectors like electricity, gas, telecommunications, water, and wastewater.
q)	Pipeline Safety Bureau: Dedicated to pipeline safety matters.
The restructuring streamlines operations and clearly delineates the roles of each division within the support framework.
7. Hearing Examiners and Ex Parte Communication Rules
Hearing Examiners:  May be appointed by the Commission to conduct hearings, collect evidence, and issue recommended decisions.
Ex Parte Communication Rules:  Private communications about ongoing or pending matters between commissioners (or hearing examiners) and any party are strictly prohibited.
Only administrative or procedural communications are allowed, and any such interaction must not confer an undue advantage.  Any improper ex parte communication must be fully disclosed to all parties involved.
Purpose:
r)	These rules are designed to maintain fairness, transparency, and due process in all Commission proceedings.
8. Rulemaking Procedures
Public Notice and Transparency: New rules require clear public notice and an opportunity for public comment, in line with the State Rules Act (including filing with the State Records Center and a 15-day waiting period unless an emergency exists).
Emergency Rules: The Commission may adopt emergency rules immediately if necessary for public safety or welfare.  However, if such a rule is to remain in effect longer than 60 days, the Commission must publish its rationale and follow up with the standard public process. These revisions promote greater transparency, robust public participation, and accountability in the rulemaking process.
Bottom Line
This legislation modernizes the PRC framework by: 
•	Separating the Governing Body from Its Support Staff: Clearly defining the roles of the three-member Commission versus the operational Agency.
•	Enhancing Ethical Standards: Instituting rigorous continuing education, conflict-of-interest safeguards, and post-employment restrictions.
•	Clarifying Organizational Structure and Operations: Realigning internal divisions and detailing the roles of hearing examiners.
•	Strengthening Communication and Rulemaking Processes: Tightening ex parte communication rules and ensuring transparent, participatory rulemaking procedures.
Overall, the bill is designed to enhance the integrity, transparency, and efficiency of the PRC while safeguarding the public interest in regulated utility matters.